Citigroup chairman collects $27m pay cheque

AMERICA'S top banker, Sandy Weill, remains its best paid, picking up almost $27m (£19m) last year despite the turmoil in the financial sector.

The 68-year-old chairman of Citigroup saw his pay for 2001 dip slightly on the previous year, though his peers have seen rewards slashed as Wall Street profits dive and job cuts swirl.

Mr Weill received a bonus of $17m and share options valued by the bank at nearly $9m on top of his $1m salary. In contrast, Philip Purcell at Morgan Stanley had his pay halved to $12.8m.

Most banks have terrible exposure to high-profile bankruptcies and the crisis in Argentina, though Citigroup seems to have hedged successfully against the worst losses.

Other executives also did well. Michael Carpenter, the head of investment banking, received $9.2m, down slightly from $9.6m.

Former US Treasury secretary Robert Rubin, now chair of the executive committee, received a $10m bonus on top of his $1m basic salary.

Mr Weill has taken $785m pay in the last five years, making him probably the best-paid executive in the US. He cashed in shares worth $196m in 2000 alone. His retirement is a source of repeated gossip though Citigroup denies this is imminent.

The bank believes the pay is justified by results. "The company continued to grow despite unprecedented challenges from both the economy and the terrorist attacks," read a statement. Citigroup's results are the best in the sector, with profits for 2001 rising 4pc to $14 billion.

The company is a target of the probe by Congress into the role of banks in supporting Enron and pushing the energy group's shares before its $70 billion bankruptcy.

That inquiry has now spread to Global Crossing, the telecom industries biggest failure. "Was Global Crossing a corporate giant toppled by a recession, or was it instead a paper tiger created by questionable bookkeeping?" asked a spokesman for the House Energy and Commerce Committee.

Creditors of Global Crossing met in a New York bankruptcy court yesterday to discuss a $750m rescue plan by Hong Kong's Hutchison Whampoa and Singapore Technologies Telemedia. If it is voted down, other bidders will emerge.

_ Ernst & Young has ended talks over a possible tie-up with embattled accountancy firm Andersen. It blamed litigation stemming from Andersen's relationship with Enron.